Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Dixons Carphone shares in strong form ahead of first-half earnings

Shares in Dixons Carphone have rallied hard since March, and look strong ahead of first-half earnings. But is a longer-term downtrend about to come into play?

Dixons Carphone Source: Bloomberg

When is Dixons Carphone’s earnings date?

Dixons Carphone publishes earnings on 16 December, covering the first half of its financial year.

Dixons Carphone earnings – what to expect

The group is forecast to report a 5% drop in adjusted earnings per share (EPS), to 10.3p, while revenue is expected to fall 6.5% to £9.51 billion. It has beaten earnings estimates in four of the last six reports, but missed on earnings in four of the previous six.

The firm has done well since March, especially given its position in the retail sector. From a 50p low the shares have recently hit 120p, the highest level in eight months. Despite the sluggish performance of Carphone Warehouse, Dixons itself has done well from a re-equipping of home offices during lockdown, and it is even managing to hold its own against Amazon. Its Nordic business is dominant in its home market, and continues to provide plenty of cash for the overall group.

At around 10 times adjusted earnings the shares trade on an undemanding valuation, but it will have to work hard to improve its online offering, and even then it will be a while before the online arm turns profitable.

How to trade Dixons Carphone earnings

The average move on results day is 4.7%, but current options pricing points towards a 9.3% move. Of the nine analysts covering Dixons Carphone, five have ‘buy’ recommendations, with three ‘holds’ and one ‘sell’.

Dixons Carphone share price – technical analysis

The post-March recovery has been an impressive one, as the shares have carved out a series of higher highs and higher lows since the end of April. November’s rally to 120p was followed up by a pullback, but this brief dip below the 50-day simple moving average (SMA) of 107p has been met by fresh buying.

Dixons Carphone daily chart Source: ProRealTime
Dixons Carphone daily chart Source: ProRealTime

Certainly the near-term trend is encouraging, and the shares do not look overextended ahead of results. But on a weekly chart the picture is less encouraging, and the possibility of disappointment could see some of the recent gains given back.

Traders need to pick their time frame and manage their risk. A rally above 120p would bolster the bull case but it would still need to clear 160p to create a new higher high on the weekly chart. Meanwhile, bears will want to see a reversal below 100p that amplifies the argument for a lower high and further declines.

Dixons Carphone weekly chart Source: ProRealTime
Dixons Carphone weekly chart Source: ProRealTime

Dixons Carphone – good job so far, but what next?

In the short term the group has done a lot of good work to shore up the business, and the arrival of a Covid-19 vaccine helps brighten the outlook. But there is still work to be done to really cement its place online. A positive daily chart outlook conflicts with the weekly downtrend, providing ammunition for both bulls and bears.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.